The last time I wrote about Nio in February, I suggested the smarter play if you liked the electric vehicle manufacturer’s stock, was to buy Tencent (OTCMKTS:TCEHY), the Chinese internet giant, whose investment in Nio represented less than 1% of its market cap.

In short, Nio stock could head lower, as the company remains on shaky ground. Since October, short interest has fallen from 28.8% of float to 22.5%, reducing chances of a short squeeze. As recent results confirm the worst, shares remain a sell even as they head below $2.50 per share.